The UK is analysing its oil and gas infrastructure to establish which pipelines can be repurposed. PA
The UK is analysing its oil and gas infrastructure to establish which pipelines can be repurposed. PA
The UK is analysing its oil and gas infrastructure to establish which pipelines can be repurposed. PA
The UK is analysing its oil and gas infrastructure to establish which pipelines can be repurposed. PA

Repurpose 100 North Sea oil and gas pipelines for £14bn net-zero windfall, says regulator


Nicky Harley
  • English
  • Arabic

The UK's oil and gas regulator has identified 100 pipelines that could be repurposed, resulting in savings worth £14 billion ($18.8bn) as the country seeks to install carbon capture and storage capabilities.

At a conference on the future of the North Sea, the head of decommissioning at the Oil and Gas Authority, Pauline Innes, said new analysis had identified 100 of the UK's 3,000 pipelines that could be repurposed for hydrogen and carbon capture.

She said decommissioning is the industry’s “unsung hero” and repurposing pipelines is a “priority”.

“It is increasingly clear that the destination for infrastructure that is returned to shore is not necessarily recycle our waste; it could be reused or repurposed,” she said.

“We realised some oil and gas structures could have a life beyond hydrocarbons and there are opportunities to decarbonise decommissioning.

“Our analysis on repurposing is leading us to the conclusion that there are great opportunities to reuse or repurpose infrastructure that is being removed from the marine environment. We also see relatively small but nonetheless valuable opportunities for infrastructure left in the marine environment to be used in another sector.

“Pipelines are where we see the main repurposing opportunity. As a transmission route connecting offshore and onshore, they can be of value to the carbon storage and hydrogen market.”

Ms Innes said pipelines hold the key due to the cost savings involved.

“If a pipeline were to be used for carbon capture or hydrogen, it has the effect of saving the new owner time, effort and the cost of installing a new pipeline,” she said.

“That is not only good from an environmental perspective, it is also good from a cost perspective. Money saved from installing infrastructure can be used elsewhere in the business.

A move to repurpose just half the infrastructure appears realistic in the short run. “We have identified 100 pipelines. If half of them were to find a life beyond oil and gas, the economic impact would be a saving of around £7bn — that is £7bn to be invested elsewhere, perhaps on developing or improving a new technology or mitigating risks that arise when you are establishing a new market.

“So, while 100 pipelines might sound small in the scheme of decommissioning, it could make a significant impact in supporting energy transmission.”

The Oil and Gas Authority is now working with operators who are five years away from ceasing operations to establish if their infrastructure can be repurposed.

The UK is presently developing its first deep test sites to examine the possibility of storing carbon dioxide in former oil and gas wells onshore.

Twenty wells in the north of England have been identified for the project, in which 1,000 tonnes of carbon dioxide could be buried.

The cost of repurposing a well and installing monitoring equipment is estimated to be £5 million.

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October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

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As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.  

“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.

Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE. 

“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.

“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”

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Courtesy: Crystal Intelligence

Updated: January 28, 2022, 1:13 PM`